The Lucy-ite company makes acrylic plaques for employees of the week and heroes of labor. Its manufacturing plant has a practical capacity of 10,000 plaques per month. Current production and sales are 7,500 units per month. The company normally charges $150 per plaque. Cost information for the current activity level is as follows Variable costs that vary with number of units produced $262,500 300,000 Direct materials Direct manufacturing labor Variable costs (setups, materials handling, quality control, etc.) that vary with number of batches, 150 x $500 per batch Fixed manufacturing costs Fixed marketing costs Total Costs 75,000 275,000 175,000 $1,087,500 Lucy-ite has just received a special one-time-only order for 2,500 plaques at $100 per unit. Accepting the special order would not affect the company's prices for current sales. Lucy-ite currently produces the output for its existing customers in batch sizes of 50 plaques (150 batches x 50 plaques per batch 7,500 plaques). The special order requires Lucy-ite to make the plaques in 25 batches of 100 each. The increased batch size applies only to the special order. a. Should Lucy-ite accept this special order? Show your calculations. What are non-cost considerations you would want to include in your discussion (even if you cannot quantify those, and thus they ultimately can't affect your decision)? b. Suppose plant capacity were only 9,000 plaques instead of 10,000 plaques each month. The special order must either be taken in full or rejected completely Should Lucy-ite accept the special order? Show your calculations. c. As in part 1, assume that monthly capacity is 10,000 plaques. Lucy-ite is concerned that if it accepts the special order, its existing customers wil immediately demand a price discount of $10 in the month in which the special order is being filled. They would argue that Lucy-ite capacity costs are now being spread over more units and that existing customers should get the benefit of these lower costs. Should Lucy-ite accept the special order under these conditions? Show your calculations